Indicator definition

Final energy consumption covers energy supplied to the final consumer for all energy uses. It is calculated as the sum of final energy consumption of all sectors. These are disaggregated to cover industry, transport, households, services and agriculture.

The indicator can be presented in relative or absolute terms. The relative contribution of a specific sector is measured by the ratio between the final energy consumption of that sector and total final energy consumption calculated for a calendar year. It is a useful indicator which highlights a country's sectoral needs in terms of final energy demand.

Units

Final energy consumption is measured in thousand tonnes of oil equivalent (ktoe).

Key policy question: Is final energy consumption decreasing in Europe?

Key messages

Between 1990 and 2010, the final energy consumption in the EU-27 increased by 7.1% (10.2% in EEA countries) at an annual average rate of 0.3% (0.5% for EEA countries).The final energy consumption in EU-27 decreased by 3.2% between 2005 and 2010 (2.1% in EEA countries). The services sector was the sector with the fastest growing energy consumption (41.4% over the period 1990-2010 and 12.2% over the period 2005-2010). Final energy consumption in the transport sector in 2010 was 29.8% higher than 1990 levels but the sector registered a 0.5 % fall in energy consumption between 2009 and 2010 despite signs of mild economic recovery. Over the same period (1990-2010), household final energy consumption increased by 12.4% while final consumption in industry fell by 20.5%. Overall, in the last year, final energy consumption in EU-27 increased, but still remained below the level in 2006 (the year where energy consumption peaked in Europe). On average, one person in the EEA countries used 2.2 tonnes of oil equivalent to meet their energy needs in 2010.

Total final energy consumption by sector in the EU-27, 1990-2010

Note:Consists of 5 figures that show the total final energy consumption, final energy consumption of petroleum products, final energy consumption of electricity, final energy consumption of natural gas and final energy consumption of solid fuel, all by sector in the EU-27.

Key assessment

Between 1990 and 2010, total final energy consumption in the EU-27 increased by 7.1% (0.3% annually), off-setting some of the reductions in the environmental impact of energy production, which were achieved as a result of fuel mix changes and technological improvements. The increase in energy consumption in the EEA countries during the same period was slightly higher at 10.2% (0.5 % annually). Between 2005 and 2010, the picture is more promising with a 2.1% decline for EEA32 and 3.2% decline for the EU27. To a certain degree the observed fall is linked to the economic recession. Between 2009 and 2010 total final energy consumption in the EU-27 increased by 3.7% and 3.9 % in the EEA countries (see Figure 3) mainly due to a mild recovery from the recession which led to a large fall in energy consumption between 2008 and 2009. Such trends clearly show the strong link between economic growth and energy consumption.

Between 1990 and 2010 the largest increases in energy consumption in the EU-27 occurred in the services and transport, 41.4% and 29.8%, respectively (43.8% and 30.7% in the EEA32). In the services sector, energy consumption increased due to the continued increase in the demand for electrical appliances, in particular information and communication technology (such as computers and photocopiers), and also for other energy-intensive technologies such as air-conditioning. In the transport sector, the increase was observed as a result of improvements in fuel efficiency being offset by increases in passenger and freight transport demand. Higher transport demand has resulted from increased ownership of private cars, particularly in the new EU Member States, growing settlement and urban sprawl with longer distances and changes in lifestyle. Rapid increases in passenger aviation have contributed significantly to the increased transport demand. Aviation (both domestic and international) represented about 13.6% of final energy consumption in the transport sector in 2010 and grew by about 69% (2.7% annually) between 1990 and 2010. Of the major sectors, the largest fall in energy consumption between 1990 and 2010 took place in the industry sector, where total final energy consumption fell by 20.5%, at an annual average rate of 1.1% in the EU-27. This was largely the result of a shift towards less energy-intensive manufacturing industries, the continuing transition to a more service-oriented European economy, as well as the effects of the economic recession in recent years. Between 2005 and 2010, energy consumption in the services sector increased by 12.2% in the EU-27 (12.3% in the EEA32). It is the only sector which saw a significant increase in energy consumption in the last 5 years. In 2010, the transport sector accounted for 31.7% of total final energy consumption in the EU-27 Member States followed by the household sector (26.6%), the industrial sector (25.3%) and the service sector (13.2%) (see Figure 1).

The observed trend differs significantly across the member countries of the EEA32 (see Figure 3). Turkey experienced the largest increase in energy consumption between 1990 and 2010 with 89.6 % mainly because of a strong industry development, followed by Cyprus (76.4%) and Ireland (61.3%). On the other hand, Lithuania and Estonia experienced the largest decrease with 50.9 % and 49.8 % respectively because of the de-industrialisation of the country. Between 2005 and 2010 Malta, Turkey and Poland experienced, by far, the largest increase (15.9%, 14.9% and 14.0% respectively) whereas Romania and Bulgaria experienced the largest decrease with 9.9%.

From a fuel perspective, it is the demand for electricity that has increased most rapidly in percentage terms (see Figure 2). Since 1990, there has been a 31.9% increase (2.4% since 2005) in final energy consumption of electricity. This has been largely as a result of the increase in consumption in the services and households sector. In the services sector, in particular, electricity consumption has increased 93.2% because new appliances, which have proliferated in the households and services sector since 1990, are mostly run on electricity. Interestingly, a significant proportion of the increase has taken place in the last five years and between 2005 and 2010 (17.1% increase). Consumption of natural gas has also increased in the EU-27 during 1990-2010 (24.8%). Although the transport sector had the largest increase of natural gas consumption the increase in the service and household sectors are more significant overall because of the contribution they make to absolute total consumption. These two sectors experienced an increase of 80% and 56.7% respectively between 1990 and 2010 growing at an average rate of 3 and 2.2% per year. In 2010, the household sector had the largest share of final energy consumption of natural gas for the EU-27 at 45.6% as a result of increase in the use of gas for residential heating. On the contrary solid fuels had the largest decrease in consumption (60.5%) between 1990 and 2010 (8.7% since 2005). The largest absolute reductions have been observed in the industry and households sectors. This is as a result of the switching from coal to gas, triggered by environmental concerns and economic reasons (price differential between coal and gas in 1990s). Consumption of oil has increased slightly during 1990 and 2010 (2.7%) but has fallen in the last five years (8.6%). Underlying this increase in final energy consumption in the transport sector is the large increase in petroleum fuels (see Figure 1). Between 1990 and 2010, there has been an increase in petroleum fuels in the transport sector of 24.8%, increasing at an average annual rate of increase of 1.1%. The transport sector is now responsible for a 75.3 % share of petroleum consumption in 2010.

Data sources

Justification for indicator selection

The indicator tracks progress made in reducing energy consumption in the different end-use sectors. Indirectly, the indicator shows progress (or lack of) in reducing the associated environmental impacts of energy production because of avoided energy supply. It can be used to monitor progress in implementation of energy efficiency and energy conservation policies. In the EU-27, the calculation of both GHG emissions and renewable targets for 2020 entails a certain level of energy efficiency/conservation.

Scientific references:

No rationale references
available

Policy context and targets

Context description

Environmental context

The trend in final energy consumption by fuel type and by sector provides a broad indication of progress in reducing final energy consumption and associated environmental impacts by the different end-use sectors (transport, industry, services and households).

The type and magnitude of energy-related pressures on the environment (e.g. GHG emissions, air pollution, etc) depends both on the sources of energy as well as on the total amount of energy consumed. One way of reducing energy-related pressures on the environment is to use less energy. This may result from reducing the demand for energy services (e.g. heat demand, passenger or freight transport) or by using energy in a more efficient way (thereby using less energy per unit of activity, see ENER 02, ENER 17, ENER 19 and ENER 21) or a combination of these.

Policy context

The Europe 2020 growth growth strategy aims to address shortcoming of the European economic model while creating coditions for smarter, more sustainable and inclusive growth. One of the headline targets include the objective of increasing the share of renewable energy in final energy consumption to 20% by 2020.

The Directive 2012/27/eu on energy efficiency establishes a common framework of measures for the promotion of energy efficiency within the European Union in order to achieve the headline target of 20% reduction in gross inland energy consumption. Member States are requested to set indicative targets. It is up to the Member states whether they base their targets on gross inland consumption, final energy consumption, primary or final energy savings or energy intensity. This directive has a direct impact on the renewables target since it aims to reduce the final energy consumption, thus making the renewables target easier to reach.

A Roadmap for moving to a competitive low carbon economy in 2050 (COM(2011) 112 final). Presents a roadmap for action in line with a 80-95% greenhouse gas emissions reduction by 2050.

On 15 December 2011, the European Commission adopted the Communication "Energy Roadmap 2050". The EU is committed to reducing greenhouse gas emissions to 80-95% below 1990 levels by 2050 in the context of necessary reductions by developed countries as a group. In the Energy Roadmap 2050 the Commission explores the challenges posed by delivering the EU's decarbonisation objective while at the same time ensuring security of energy supply and competitiveness.

On 10 November 2010, the European Commission has adopted the Communication "Energy 2020 - A strategy for competitive, sustainable and secure energy". The Communication defines the energy priorities for the next ten years and sets the actions to be taken in order to tackle the challenges of saving energy, achieving a market with competitive prizes and secure supplies, boosting technological leadership, and effectively negotiate with our international partners.

Council adopted on 6 April 2009 the climate-energy legislative package containing measures to fight climate change and promote renewable energy. This package is designed to achieve the EU's overall environmental target of a 20 % reduction in greenhouse gases and a 20 % share of renewable energy in the EU's total energy consumption by 2020.The climate action and renewable energy (CARE) package includes the following main policy documents

Directive 2009/29/ec of the European parliament and of the Council amending directive 2003/87/ec so as to improve and extend the greenhouse gas emission allowance trading scheme of the community

Directive 2009/31/ec of the European parliament and of the Council on the geological storage of carbon dioxide

Directive 2009/28/ec of the European parliament and of the Council on the promotion of the use of energy from renewable sources

Community guidelines on state aid for environmental protection (2008/c 82/01)

Directive 2008/101/ec of the European parliament and of the Council amending directive 2003/87/ec so as to include aviation activities in the scheme for greenhouse gas Emission allowance trading within the community

Regulation (ec) no 443/2009 of the European parliament and of the Council setting emission performance standards for new passenger cars as part of the community’s integrated approach to reduce CO2 emissions from light-duty vehicles

Second Strategic Energy Review; COM(2008) 781 final

Strategic review on short, medium and long term targets on EU energy security.

Sustainable production and consumption action plan COM(2008) 397 final

The strategy is meant to further sustainable consumption and production and promote

its sustainable industrial policy.

Action Plan for Energy Efficiency: Realising the Potential COM(2006)545 final

This Action Plan outlines a framework of policies and measures with a view to intensify the process of realising the 20% estimated savings potential in EU annual primary energy consumption by 2020.

Targets

The Directive 2012/27/eu on energy efficiency establishes a common framework of measures for the promotion of energy efficiency within the European Union in order to achieve the headline target of 20% reduction in gross inland energy consumption. Member States are requested to set indicative targets. It is up to the Member states whether they base their targets on gross inland consumption, final energy consumption, primary or final energy savings or energy intensity.

Related policy documents

Regulation (ec) no 443/2009 of the European parliament and of the Council setting emission performance standards for new passenger cars as part of the community's integrated approach to reduce CO2 emissions from light-duty vehicles.

Directive 2008/101/ec of the European parliament and of the Council amending directive 2003/87/ec so as to include aviation activities in the scheme for greenhouse gas Emission allowance trading within the community

Geographical coverage The Agency had 32 member countries at the time of writing of this fact sheet. These are the 27 European Union Member States and Turkey, plus the countries Iceland, Switzerland, Norway and Liechtenstein. Note that no data are included on Liechtenstein or Iceland due to lack of data in Eurostat. Figure 3 also covers data of the World, Africa, Middle-East, China, India, Russia and United States.

Methodology for gap filling

No gap filling was applied.

Methodology references

No methodology references available.

Uncertainties

Methodology uncertainty

Reliability, accuracy, robustness, uncertainty (at data level):

Indicator uncertainty (historical data):Any cross-country comparison of the distribution of final energy consumption between sectors will have to be accompanied by a relevant measure of the importance of the sector in the economy, as the sectoral shares also depends on the country's economic circumstances. Because the focus is on the reduction of final energy consumption and not on the sectoral redistribution of such consumption, the trends in the absolute values (in thousand tonnes of oil equivalent) should be preferred as a more meaningful indicator of progress. However, even if the same sectors in two countries are equally important to the economy, the gross (primary) consumption of energy needed before it reaches the final user might draw from energy sources that pollute the environment in different ways. Thus, from an environmental point of view, the final energy consumption of a sector should be analysed in that broader context.The sectoral breakdown of final energy consumption includes industry, transport, households, services, agriculture, fisheries and other sectors. The inclusion of agriculture and fisheries together with the services sector is however questionable given their divergent trends. Separate assessments are therefore made where appropriate. It is worth noting that according to Eurostat final energy consumption in agriculture is not very reliable and it mainly means consumption from engines used for agricultural transportation. A new definition is now used in the energy questionnaires to be more in line with the IPCC guidelines